The All India Association of Industries (AIAI) is a premier Chamber of Commerce working in the interest of trade, industry and employment since 1956. Ms. Sangeeta Jain, Senior Director, All India Association of Industries, said this is in reference to the Rs 1 lakh crore stimulus package to be announced for the MSME sector . The AIAI seeks for a total of Rs 4 lakh crore of financial stimulus with Rs1lakh crore being for the MSME and Rs 3 lakh crore for other trade and industry infrastructure, exporters and larger industrial units. We wish to bring your kind attention that the recent assistance provided by the Asian Development Bank itself is $2.5 billion and the recent US aid to India stand to $2.3 billion . Hence , in comparison to such an aid the stimulus package is far too small in quantity.
Ms. Jain further added that post the COVID19 disaster in addition to the ongoing rampage of slowdown and global recession, there is also an urgent need to appeal to other World Financial institutions such as the IMF and the World Bank, an additional aid of $50 Billion which will help in easing the economy to a large extent. At the same time the Asian Development Bank needs to be appealed for a total of $5billion and the NDB for another $2 billion in view of the horrid effects of the month long Lockdown which has practically destroyed the Indian economy .Indian economy is scheduled to lose Rs8 lakh crore post lockdown. There has been a rampant rise in unemployment , dampened consumerism , loss of wealth etc . A big volume stimulus is the only answer to the upcoming of the aggrieved economy. The stimulus from these international corners will help in the following way,
1. There will be an evident control on the fiscal discipline
2. Liquidity will be maintained in the system and can be availed by all the stakeholders in rebuilding the nation post the COVID19 apocalypse. Only in case it reaches the lower tranches of the economy in a perfect financial cascade.
3. This aid can be used to build public infrastructure like power generation, roads, railways, airports, SEZs, ports etc which will aide industry and trade.
4. In addition to this associated infrastructure such as renewable energy systems , water management infrastructure, waste recycle infrastructure , affordable housing and many more.
We hope our suggestion for larger financial package will be considered, said Ms. Jain.